Air India Cuts Overseas Flights As Middle East Crisis Raises Costs

Air India will suspend several overseas flights for three months starting in June, following a sharp rise in aviation fuel prices linked to the ongoing conflict in the Middle East, according to reports.

The reduction will affect multiple international routes operating from Delhi, including flights to Chicago, Newark, Singapore and Shanghai. The airline has also scaled back services to San Francisco, Paris and Toronto.

Reports said the airline has reduced nearly 100 flights per day across its network.

Last week, Air India CEO Campbell Wilson said the carrier would continue trimming international operations because of higher fuel expenses and geopolitical uncertainty.

At the same time, the airline has tightened internal oversight and cost controls while dealing with financial and operational strain.

During a recent town hall meeting, Wilson informed employees that more than 1,000 staff members had been dismissed over the past three years for misconduct and breaches of company policy.

The reported violations included misuse of the Employee Leisure Travel (ELT) programme, unauthorised handling of baggage, smuggling items from aircraft and permitting excess luggage without collecting proper charges.

The Air India Group, which includes Air India and Air India Express, will likely report losses exceeding Rs 22,000 crore for the financial year ending March 2026.

Under the Tata Group’s restructuring plan, the airline has introduced several expenditure cuts, including freezing annual pay hikes, limiting discretionary spending and reducing non-essential costs across departments.

Government data also showed that Air India Express recorded a sharp increase in losses during FY25.

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